Debt worries for quarter of Brits

A quarter of Brits are just a step away from debt misery, according to new research conducted by Santander.

The bank has discovered that one in four Britons have no savings to fall back on at all, meaning that the upcoming austerity budget could hit them hard and leave them seeking debt solutions.

On top of this figure, a massive 19 million people can't afford to put anything away into savings accounts at the moment, so unless they find other ways to cut back on spending, they could find themselves being consumed by debt too.

Whilst the government has outlined plans to cut £6bn of the nation's debt, the Treasury has announced that they will listen to the public, businesses and other groups.

The plan is to gauge opinion about how and where debt savings can be made.

Kevin Still, director of Atlantic Financial Management agrees. He says: "A protracted recession has meant that millions of UK consumers are running very lean household budgets with no financial reserves making themselves very vulnerable to income or expenditure shocks.

"We expect to see more people seeking needing managed debt solutions like Debt Management Plans (DMPs) and IVAs."

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